Under Schedule 36 Finance Act 2008, a notice can be issued to a person, requiring them to produce information and / or documents which are reasonably required to check their tax position.

The notice must stipulate a time limit (usually 30 days) by which the information and / or documents must be provided. If the person fails to provide everything the notice asks for, they may have to pay penalties under paragraphs 39 - 52, Schedule 36, Finance Act 2008: a standard penalty of £300 in connection with the initial failure and, if the failure continues, daily penalties at a rate of up to £60/day.

The person may appeal against the notice, except where it is issued under the direction of the First Tier Tribunal or where the requirement is to supply anything which forms part of a person’s Statutory Records. The appeal must be made in writing and must reach HMRC within 30 days of receipt of the notice. It must also specify the grounds of appeal. Grounds of appeal could be, for example, that the information requested was not reasonably required for the purposes of checking the person’s tax position.

The appeal may be against the notice itself or any specific requirement within the notice. Where an appeal is made in connection with the former, the person does not need to comply with any requirement within the notice until the appeal is decided. Where the appeal is made against the latter, the person must still comply with the requirements that are not under appeal.

Where an appeal is made against an information notice, advice must be taken immediately of the Litigation and Technical Advice Team [LTAT].

The rules in Part V of the Taxes Management Act 1970 [Appeals and other proceedings] apply to an appeal against an Information notice. This means that an appeal can be settled by agreement between HMRC and the appellant. If the dispute is not resolved either by discussion or following a review, the appellant may notify their appeal to the Tribunal to decide. The Tribunal’s decision is final. See the Compliance Handbook at CH229950 for further guidance.

If the notice is confirmed by the Tribunal, the appellant has 30 days from the date of the determination of the appeal in which to comply. Failure to comply with a confirmed notice will result in the imposition of penalties.

Any failure to comply with a Schedule 36 notice issued by SAV should be discussed with a Grade 7 immediately the stipulated time period has elapsed.